DEF 14A: RPC, Inc. Announces 2024 Annual Meeting of Stockholders, Details Financial Performance and Sustainability Initiatives

RPC, Inc. will hold its 2024 Annual Meeting of Stockholders on April 23, 2024, to elect directors, ratify the appointment of the independent auditor, and approve the 2024 Stock Incentive Plan, while also highlighting the company's financial performance and sustainability efforts.

Summary

• RPC, Inc. will hold its 2024 Annual Meeting of Stockholders on April 23, 2024.
• The meeting will address the election of three Class II director nominees, ratification of Grant Thornton LLP as the independent auditor, and approval of the 2024 Stock Incentive Plan.
• In 2023, RPC's revenues increased by 1% to $1.62 billion, and diluted earnings per share were $0.90.
• The company generated approximately $395 million of cash from operating activities, nearly doubling the prior year amount.
• RPC ended 2023 with a cash position of $223 million and no debt.
• In 2023, RPC paid nearly $35 million in dividends and bought back nearly $19 million of stock.
• The company upgraded its asset base and acquired Spinnaker cementing business.
• RPC published its first corporate sustainability report in 2023.
• The company's outstanding capital stock on March 1, 2024, consisted of 215,445,403 shares of Common Stock.
• Officers and directors of the Company and their affiliates hold approximately 60% of the outstanding shares of Common Stock.

Sentiment

Score: 7

Explanation: The document presents a balanced view, highlighting both positive financial achievements and a slight decrease in earnings per share. The emphasis on sustainability and shareholder returns contributes to a moderately positive sentiment.

Positives

• RPC's revenues increased by 1% to $1.62 billion in 2023.
• The company generated approximately $395 million of cash from operating activities in 2023.
• RPC ended 2023 with a cash position of $223 million and no debt.
• The company paid nearly $35 million in dividends and bought back nearly $19 million of stock in 2023.
• RPC upgraded its asset base and acquired Spinnaker cementing business.
• The company published its first corporate sustainability report in 2023.
• Thru Tubing Solutions was recognized as a 2023 Top Workplace by both USA TODAY and The Oklahoman.

Negatives

• Diluted earnings per share decreased to $0.90 in 2023, versus $1.01 in 2022.

Risks

• The company's business is dependent on the oil and natural gas industries and related commodity pricing.
• The company faces potential reliance on large customers.
• Adverse weather conditions could impact the business.
• Wars and pandemics could have a potential impact on the business.

Future Outlook

The company expresses optimism for another year of solid financial performance and intends to continue prudently expanding the business.

Management Comments

• We are confident in our ability to invest in the business and continue returning capital to shareholders.
• We enter 2024 with a healthy balance sheet, an appetite to continue prudently expanding the business, and optimism for another year of solid financial performance.
• We remain committed to the financial discipline and conservative approach that has been our hallmark for decades and the backbone of our longevity and success.

Industry Context

The document highlights RPC's position as an oil and gas services company operating in a dynamic industry environment, emphasizing its commitment to financial discipline and sustainability.

Comparison to Industry Standards

• The document mentions Rollins, Inc. and Marine Products Corporation as companies with overlapping directors, indicating potential governance benchmarks.
• The document references the Philadelphia Oil Services Sector (OSX) index as a benchmark for TSR performance.

Related Party Transactions

• The Company provides certain administrative services to Marine Products on a cost reimbursement basis.
• RPC and Marine Products own 50% each of a limited liability company called 255 RC, LLC that was created for the joint purchase and ownership of a corporate aircraft.
• A subsidiary of RPC conducted business with companies owned by LOR, Inc., a member of the control group.

Stakeholder Impact

• The company aims to deliver high-quality services to customers.
• The company aims to provide safe and rewarding work for employees.
• The company aims to provide returns to shareholders.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will continue to publish annual corporate sustainability reports.
• The company will continue to monitor and manage cybersecurity risks.

Key Dates

Keywords

Annual Meeting, Stockholders, Financial Performance, Sustainability, Director Election, Auditor Ratification, Stock Incentive Plan, Dividends, Stock Buyback, Acquisition, ESG